Converging and diverging pressures in PBB development: the experiences of Finland and Sweden

ABSTRACT

This paper aims to provide institutional explanations for the development of performance-based budgeting (PBB). Particularly, we explore the tensions between converging and diverging pressures. By analysing PBB in two countries with significant experience with it, Finland and Sweden, the research explains why we observe only evolutionary changes in actual budgetary practices. Indeed, the introduction of this practice is part of a global reform process undertaken over decades by public sector organizations. Nevertheless, the countries still struggle with PBB and, despite global converging pressures, diverging pressures shape its development, challenging its implementation and use, and paving the way for evolutionary changes.

KEYWORDS:

• Performance budgeting
• isomorphism
• institutional logics
• ambiguities
• central government

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Giuseppe Grossi

Giuseppe Grossi is Professor in Accounting at Nord University (Norway), Professor in Public Management and Accounting at Kristianstad University (Sweden) and Visiting Professor at Kozminski University (Poland). Grossi’s research focuses on hybrid forms of governance, smart cities, and public budgeting.

Sara Giovanna Mauro

Sara Giovanna Mauro is Research Fellow at the Institute of Management, Scuola Superiore Sant’Anna of Pisa, where she received her PhD in Management. Her primary research interests are in public sector accounting and management, with a focus on performance budgeting, performance management, and participatory management.

Jarmo Vakkuri

Jarmo Vakkuri is Professor at the Faculty of Management, University of Tampere, and the director of the research group on Public Financial Management. His research concentrates on public financial management, performance measurement in public administration, theories of decision-making, hybrid forms of governance, and urban policy-making.